Debt Traps by

Debt Traps

ethanmiddleton3 — 2024-11-23 20:51:04 UTC

In this assignment wall i will me talking about and explaining debt traps.

Video #1

ethanmiddleton3 — 2024-11-23 20:56:07 UTC

This video explains certain aspects of the debt problem in Canada right now. Due to the cost of living going up and wages not being able to keep up Canada has just hit a record high of 3 trillion dollars in household debt.

I chose this video because it goes over current issues with the Canadian economy and as of making this it was uploaded 18 hours ago making it very relevant and up to date.

Video #2

ethanmiddleton3 — 2024-11-23 20:56:22 UTC

This video explains in a very simple and easy to follow way how banks can easily trap people in debt. The video specifically uses the example for immigrants as Canada has one of the highest percentage of immigrants per population however, this video can easily be applied to a young Canadian who is trying to build their credit as well.

I chose this video because it is very easy to understand. it warns about different tricks that banks use to trap you to bring you to debt. They often offer you things such as high limits hoping you will act on them and then offer you loans to pay off those limits with lower interest. This causes a snow ball effect making it harder and harder to escape from debt.

Video #3

ethanmiddleton3 — 2024-11-23 20:56:31 UTC

This video is a short and brief explanation on how many Canadians find themselves in debt and how easy it is to remain in debt. It also gives advice on how t recover from debt.

I Chose this video because it is nice and short but holds good information. Not only does it explain debts it explains steps to help you get out of it.

Video #4

ethanmiddleton3 — 2024-11-23 20:56:38 UTC

This video explains the reasons why many Canadians get into debt and like the previous video #3 it explains steps you can take in order to escape debt or at least lighten the load

I chose this video for the same reasons that I chose video #3 it is not very long but it contains very useful information that every Canadian can and should use to help them live a better life with less debt and less stress.

Website #1

ethanmiddleton3 — 2024-11-23 20:58:10 UTC

This web article goes over the differences between good and bad debts as well as gives 4 simple steps you can take to prevent yourself from falling into bad debts

I chose this web article because it mentions the need for a strong financial plan. A strong plan is the key to staying out of debts. Know what you can and cant afford to pay.

Website #2

ethanmiddleton3 — 2024-11-23 20:58:26 UTC

This website is from the government of Canada it has six sections that are all ways that Canadians can get out of their debts such as making a list of debts, reviewing a budget and making a strategy.

I chose this website because it has some good tips on how to get out of debt but I also think its quite ironic that the government that is putting majority of their population into these debts is the same one that makes a small article on how to get out of them.

Website #3

ethanmiddleton3 — 2024-11-23 20:58:36 UTC

This website is pretty much a giant data sheet. using a sample size of around 30 million Canadians with credit cards he analyzed all of the info given and has made many different conclusions and charts from the data off the top of my head I remember that nearly 50% of Canadians do not pay their credit cards of in full thus carrying a balance to the next month and paying interest.

I chose this website because it has so much great data. there are charts and explanations as well as different groups such as people with and without a mortgage. I spent a good long time just reading it all.

Website #4

ethanmiddleton3 — 2024-11-23 20:58:44 UTC

This website uses the real example of a student that immigrated to Canada. He was given a grant for his schooling of about $15,000 but during the pandemic those grants became loans causing debt. this website also has other examples of how debt can trap students for life through interest and inflation.

I chose this website because it is very informulable about students debts and students loans. It also has a real life story that happened to a student which can make it feel more personal and get the feeling that this could happen to anyone which, makes it more real.

Image #1

ethanmiddleton3 — 2024-11-23 20:59:00 UTC

This Photo is very simple but effective. It shows debt traps in what I feel is a very smarts way. The human offers a mouse cheese and the mouse's greed leads the mouse to its death. it a similar fashion the bank offers you higher limits and loans and then you take them. This leads to you having possible lifetime debt. I feel this is a very good metaphorical photo representing debt traps.

Image #2

ethanmiddleton3 — 2024-11-23 20:59:13 UTC

This picture showcases the ball and chain often worn by prisoners to prevent them from running away or escaping when doing tasks outside of the prison. Like the ball and chain debt effects what you are able to do and what you're able to enjoy. and like the prison it is hard for someone to escape their debts especially if they are in the hole really deep.

1. What did you learn about your topic that surprised you the most?

ethanmiddleton3 — 2024-11-25 19:35:16 UTC

What probably surprised me the most is how much money is owed to the government alone. Website #4 said that there is over 23 billion dollars owed in student debt alone and that was in 2022.

2. Provide a real-life example of how this topic is relevant or interesting for you.

ethanmiddleton3 — 2024-11-25 19:39:21 UTC

This topic is relevant to me because as someone with a credit card I could get into a bad habit of over spending. thankfully I am very good with my money and I have no debts but that could all change once I have major loans to pay such as a mortgage or car loans. It also helped give me steps to ensue I can stay out of bad debts through research for tis assignment.

3. If you could pass on your knowledge to a family member or friend, what do you think is the most important thing to pass on?

ethanmiddleton3 — 2024-11-25 19:43:44 UTC

I think the most important information to pass on is the importance of a budget and or a plan. A budget may seem simple but creating a budget and following it can help a person or family in all the right ways. If you need to take a loan work out numbers and terms to find what fits you and your budget them best so you can pay it off in a fast and smooth fashion. BUDGET BUDGET BUDGET!